Bulletin No. LH 2016-02: Extension of Transitional Policies Through Calendar Year 2017

GOVERNOR MARY FALLIN INSURANCE COMMISSIONER JOHN D. DOAK INSURANCE COMMISSIONER State of Oklahoma FIVE CORPORATE PLAZA, 3625 N.W. 56th STREET, SUITE 100 • OKLAHOMA CITY, OKLAHOMA 73112-4511 (405) 521-2828 • TOLL FREE (IN STATE) 1-800-522-0071 BULLETIN NO. LH 2016-02 To: All Health Insurance Companies and Health Maintenance Organizations Re: Extension of Transitional Policies Through Calendar Year 2017 From: Oklahoma Insurance Department Date: March 4, 2016 The purpose of this bulletin is to inform all Oklahoma licensed health insurance carriers of the requirements of the Oklahoma Insurance Department (OID) as they relate to the bulletin released by the Centers for Medicare and Medicaid (CMS) on February 29, 2016, regarding the Extended Transition to Affordable Care Act – Compliant Policies. Previously, with guidance issued in its November 14, 2013 and March 5, 2014 letters, CMS announced that, with permission by State Regulators, health insurance issuers could choose to continue certain coverages that would otherwise be cancelled under the Public Health Service Act. These extended transition policies are eligible for renewal for the policy year beginning on or before October 1, 2016, in the individual and small group markets. The OID issued a bulletin, LH 2014-01, on March 26, 2014, providing guidance on the subject of “Renewal of Non-ACA Compliant Polices” otherwise known as extended transition policies. Based on the CMS announcement on February 29, 2016, the Department advises carriers that existing extended transition polices may be renewed for policy years beginning on or before October 1, 2017, provided that all transition policies end by December 31, 2017. In an effort to minimize market disruption, issuers will be given the option to renew existing extended transition policies in the individual and small group markets with a 12 month policy duration, shorter than 12 month duration or longer than 12 month duration provided that all affected policies terminate no later than December 31, 2017. Renewal actions will be consistent with and conform to Oklahoma laws governing insurance renewals. Health insurance issuers that renew coverage under the extended transitional policy, must, for each policy year, provide the relevant attached notice to affected individuals and small businesses as specified in the CMS November 14, 2013 and March 5, 2014 CMS guidance. Questions or comments applicable to this bulletin should be directed to Mike Rhoads (mike.rhoads@oid.ok.gov) or Gordon Amini (gordon.amini@oid.ok.gov), Oklahoma Insurance Department, Five Corporate Plaza, 3625 NW 56th, Suite 100, Oklahoma City, OK 73112.